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In the future, valuable biochemicals will increasingly replace fossil raw materials in many products

News 12.11.2024

Bio-based value-added chemicals derived from biomasses, such as forest and agricultural primary and side streams, offer a renewable alternative for the production of many daily products such as cosmetics, detergents and textile coatings. A new vision report from the Natural Resources Institute of Finland (Luke) provides an outlook on the use of bio-based value-added chemicals and their growing market.

Luke's vision report describes chemical compounds derived from forest, agricultural and aquatic biomasses and their applications in different product categories. The report also assesses the future market development of the value-added biochemicals. 

"Our vision is that bio-based value-added chemicals replacing non-renewable raw materials will be widely available to industry and consumers by 2050. The industry has a strong need for renewable alternatives and the demand will increase the availability of bio-based products in the near future," says Riina Muilu-Mäkelä, Research Manager at Luke, one of the authors of the report.

Growing demand for biomass-based products

Currently, bio-based chemicals account for around 7% of the EU market for bio-based industries*. However, there is a strong and growing demand for renewable alternatives in the industry, as the use of fossil-based products is problematic due to greenhouse gas emissions, environmental chemicalisation and dwindling fossil reserves.

"Bio-based chemicals derived from renewable resources can significantly reduce dependence on fossil raw materials and promote a circular economy, which is in line with global climate goals," says Muilu-Mäkelä.

However, there are limits to the production and use of biomasses. Climate change, biodiversity loss, geopolitical tensions, security of supply and population growth will affect the potential for biomass production and use both regionally and globally. "When replacing fossil solutions with bio-based alternatives, the environmental benefits need to be clearly demonstrated, for example through life-cycle assessment," Muilu-Mäkelä continues.

Limited resources also mean that there is a growing need for industry to exploit the biomass as efficiently and comprehensively as possible. The use of biomass in accordance with the cascade principle** improves the economic viability of biochemical production.

Regulatory instruments are needed to support market growth

The market growth for bio-based innovations, including biochemicals, needs to be driven by regulation. Current legislation is a barrier to market entry for many bio-based innovations and favours traditional fossil-based industries. 

"However, regulatory instruments are emerging to support the transition to a sustainable bio-based economy. A long-term and predictable governance and policy environment is key for companies developing bio-based products," says Johanna Kohl, Director of Luke's Circular Bioeconomy Research Programme.

The breakthrough of bio-based innovations is also currently limited by consumer acceptance. Consumers prefer products they are familiar with and may be reluctant to switch to bio-based circular solutions, especially if the environmental benefits are not clearly demonstrated. More research into consumer attitudes is needed. This information can also contribute to the development of effective and acceptable policy instruments.

What are valuable biochemicals?

A wide range of fractions can be obtained from different biomasses through cascade processing**. For example, hot water extraction can be used to separate phenolic compounds such as condensed tannins, stilbenes and flavonoids, which have applications in building materials, winemaking, adhesives, pharmaceuticals and cosmetics. Biomass can also be used to produce nutritional proteins, fibres and health-promoting food and feed ingredients.

*Bio-based industry refers to production from biomass, excluding the food and beverage industry.

**In cascade processing, different value components and bioproducts are separated from the raw material by sequentially connected technological unit processes. The entire biomass is fully utilized into products, nutrients, and energy of the highest possible added value, while avoiding the creation of new unused by-products.